BHAGYA LAXMI Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) Appellant has filed this appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') challenging the award dated 17.09.2014 passed by the District Judge, whereby, objections filed by the appellant, were dismissed and the award passed by Empowered Standing Committee dated 5.8.2013, was upheld.

(2.) Case of the appellant is that it was a registered partnership firm and had entered into a contract with the respondents with regard to Kishan-Khertal-Tatarpur Road. Agreement work dated 31.03.2008 was issued in favour of the appellant company. As per the said work order, the date of commencement of the work was 10.04.2008 and the date of completion of the work was 19.10.2008. Thus, the work was to be completed within six months. Prior to the commencement of the work an agreement was executed between the parties on 10.04.2004 at Alwar. As per the work order, the contract amount was Rs.2,30,84,153/-. Appellant had completed the work on 15.03.2009. As per the G- schedule of the respondents, completion certificate was issued in favour of the appellant on 27.08.2009 and performance certificate was issued in favour of the appellant on 18.08.2009. Payment of final bill was made to the appellant without any compensation. Delay of 157 days was condoned by the respondents vide order dated 19.08.2009 on account of 'Gujar Agitation'. From each running bill, 10% amount as security was deducted by the respondents, i.e., Rs.26,80,430/-. Appellant had done maintenance of the work allotted to it from time to time. In-fact, the road was damaged on account of heavy traffic, despite the fact that the appellant had been regularly maintaining the same. In- fact, Rs.30,24,676/- remained outstanding towards appellant. Appellant submitted a claim before the Empowered Standing Committee on 22.02.2012 as per clause 23 of the agreement. The Empowered Standing Committee dismissed the claim filed by the appellant vide award dated 18.07.2012.

(3.) Aggrieved against the said award, appellant filed objections under Section 34 of the Act before the District Judge. District Judge vide order dated 9.7.2013 quash the award dated 18.07.2012 and remanded the case to the Committee for a fresh decision. After hearing the appellant, the Committee vide award dated 5.8.2013 has partly allowed the claim of the appellant and has directed that the security amount of Rs.26,80,430/- be forfeited and the balance amount of Rs.30,24,676/- was ordered not to be recovered from the appellant. Hence, the present appeal.